PFE will offer 20% of Zoetis at about $22 per share, with trading to begin on February 1. PFE shareholders will receive no shares in ZTS immediately, but a full spin-off to shareholders of the remaining 80% PFE owns may occur in the future. Meanwhile, PFE shareholders will benefit from the approximately $2B in cash raised by the IPO and any appreciation in ZTS's shares.
Thanks for the info. I did some more research, and what I found agrees with what you posted. I also read where PFE may do an ABT like split at some point where they break into two. Apparently some analysts believe PFE's parts have more value than the valuation given to the whole. I also read an article where PFE is rumored to be considering doing a deal with an Indian drug company that they do injectable business with. This reportedly would give them more of a generic presence.
Unless the greater plan is for PFE to use the proceeds to buyback PFE shares, thereby artificially raising EPS so they can achieve their internal management goals, thereby bonusing and optioning themselves to the hilt. Then the ordinary shareholder will be the ultimate dupe!
I disagree with your statement that "the ordinary shareholder will will be the ultimate dupe." The CEO, Ian Read, has been nothing but shareholder friendly and committed to increasing shareholder value as evidenced by the tremendous rise in stock price since he took over Pfizer. He will make sure that Zoetis is handled in a way that monetizes the value for shareholders.
.96/share divy. - solid co. over the long term. If you think it is a "dupe' sell and be done with it.
Or work really hard and maybe one day you will be an "evil manager" of a major public company. Easier to complain about it than do something for yourself isn't it? Your type of "thinking" has grown immensely over the past 4 years and is an unfortunate "new" attitude of many.
Very good post. At least someone knows how the game is played. The other guy has it backwards. They spinoff 80% and 20% leftover might trickle down to dupets. Best thing is to have 2 accounts at seperate brokers and box gains til the mess irons out. Any loss should be sold immediatly.